As bottom-up investors in global markets, we are highly selective about the companies in which we invest. We are patient and long-term focused. Under our intrinsic value investment philosophy, we:
Treat every investment as a partial ownership interest in that company
Seek to invest at a discount to intrinsic value
Possess a long-term investment temperament
Recognize that market price and intrinsic value tend to converge over a reasonable period of time
Our process leads us to identify higher-quality businesses where we can confidently predict cash flows over longer periods of time. We prefer companies with strong balance sheets that are led by management teams with a history of making smart capital allocation decisions.
As valuation-disciplined investors, we must have the psychological fortitude to buy when everyone else is selling. In uncertain times, we want to be able to invest in new opportunities or add to existing holdings. Therefore, it is critical that we deeply understand a business’s long-term intrinsic value. Doing so gives us the confidence to invest when markets are unfairly valuing individual businesses.
Having a long-term investment orientation requires a deep understanding of sustainability — in business models,
management teams and operating practices.
Our fundamental equity research process includes evaluation of all material risks and opportunities that could impact the
value of an investment over the long term, including issues related to sustainability and ESG risk factors.